Stephen Goodrich, Mail Fraud, Connecticut 2014

A $1.8 million investment scheme that swindled over a dozen individuals has landed a Rocky Hill man in hot water, with a potential 23-year prison sentence looming.

According to officials, Stephen Goodrich, 57, waived his right to indictment and pleaded guilty to one count of mail fraud and one count of subscribing to a false tax return in a Hartford courtroom on November 19, 2014.

The charges stem from Goodrich’s operation of an investment scheme that duped investors out of more than $1.8 million.

Goodrich, a former Bristol resident, conducted an investment business using the name Goodrich Financial, despite not being a licensed or registered investment adviser.

Beginning in approximately 2006 and continuing to approximately November 2012, Goodrich engaged in a scheme to defraud individuals who had provided him with investment funds by failing to invest the funds as represented, and by using some of the investment funds for his personal use.

At times, Goodrich also used new investor funds to return the principal investment to older investors as is often done in Ponzi schemes.

Goodrich, who used more than $600,000 of the investors’ funds for his personal use without disclosing this income on his federal tax returns, owes $239,443 in additional federal taxes, plus interest and penalties.

The defendant is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on December 30, 2014, at which time he faces a maximum term of imprisonment of 23 years, a fine of up to approximately $3.6 million and an order of restitution.

Goodrich is currently released on a $25,000 bond.

Those who suspect financial fraud schemes can report them by calling, toll free, 855-236-9740, or by sending an email to ctsecuritiesfraud@ic.fbi.gov.

For more information, contact the U.S. Attorney’s Office at (203) 821-3722 or thomas.carson@usdoj.gov.

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